"This featured chart depicts the explosion in Chinese gold imports from Hong Kong since January 2012, during which China imported an astonishing 1,206 tonnes of gold – 20% more than the nation's latest official gold holdings of 1,054 tonnes. In the first quarter of 2013 alone, China imported 372 tonnes from Hong Kong, or nearly what was imported through the entire first half of 2012." Continue reading →
"After updating their precious metals' company cost curve, Citi's ominous warning that, 'a combination of rising unit costs (15% yoy), sustained high capital budgets and a falling gold price have resulted in a fast contraction in margins - so much that no gold company under our coverage will generate Free Cash Flow at spot gold.'" Continue reading →
"Many junior miners are already struggling to remain profitable. We may soon see them begin to close down some of their more costly mines, spend less on exploration and invest less in general. However, as miners are forced to cut output, prices should begin to stabilize. If your appetite for risk is relatively high, you may want to consider bargain hunting in this sector. If you do decide to look more closely at mining stocks, you must remain nimble, and try to find large, relatively stable companies that pay a healthy dividend. One company that fits the bill is Newmont Mining (NEM), which has a dividend yield of 4.7 percent." Continue reading →
"Colombian armed groups are reaping profits from illegal gold mining that are five times greater than returns from cocaine, according to Colonel Hector Paez, acting director of the country’s rural police division. Cocaine typically takes six months to produce and requires considerable knowledge, while an illegal mining operation in the Colombian jungle can extract two kilograms of gold a week, Paez said in a June 19 interview in Bogota. Gold, which slumped below $1,300 an ounce for the first time since September 2010 in New York yesterday, has become Colombia’s biggest export after oil and coal." Continue reading →
"The Reserve Bank of India's, or RBI, offensive against gold continued Tuesday when it imposed restrictions on the country's regional rural banks, or RRBs, for lending money against gold, in an attempt to discourage demand for the precious metal and reduce its imports. 'It is advised that while granting advance against the security of specially minted gold coins sold by banks, RRBs should ensure that the weight of the coin(s) does not exceed 50 grams per customer,' RBI said in a statement. The RBI, in recent months, has been hard at work trying to contain the appetite for gold, which is an integral part of India’s culture, lifestyle and festivals." Continue reading →
"Nothing, and I mean nothing, has been solved in Europe. The crisis will soon escalate with a vengeance. When, not if, Europe’s economy roils again, likely later this summer: First, you’re going to see trillions of euros stampede for the exits. Second, that will likely send global interest rates rocketing higher. Third, it’s going to send the U.S. dollar into rally mode, right along with gold. Fourth, it’s also going to send our stock markets roaring higher. Fifth, it’s going to give you many profit opportunities to potentially make more money that you ever dreamed of. In stocks. In commodities. In the dollar. And in gold and silver." Continue reading →
"While the current correction hasn't been as deep as that of the mid-'70s, the decline is already longer, and it's the most prolonged of the current cycle. It is thus reasonable to expect gold to take two years or more to regain the $1,900 level and continue beyond. Barring a black swan event, gold will likely log its first annual loss since 2000 this year. However, it's not all bad news, as the chart shows: gold nearly doubled in the two years from its '76 low to its '78 return to former highs. The message here is obvious: add to your inventory at depressed levels. And don't worry about missing the bottom." Continue reading →
"I've been in the investment world a long time and I know that things can stay below the cost of production for years. It takes a long time for people to believe they have to close their mines. It costs money to close a mine, it costs money to re-open a mine, so people are reluctant to close mines. So you can see any commodity staying below the cost of production for a while, especially if it's something like a mine which is expensive to close, and expensive to open. Some people are not going to be able to open mines because of what's happened. But then you're going to eventually have people close mines, and eventually, like I said it's going to work its way out." Continue reading →
"The French not so long ago invaded the impoverished African country of Mali. This invasion was said to have been caused by French concern that Al Qaeda mercenaries from Libya (also destabilized by the French, Americans, NATO, etc.) were finding sanctuary and beginning a further destabilization. If this report by RT is correct, Willie's suspicions look to have been confirmed. Under guise of concern about local mining and lack of taxes, the Mali 'government' has decided to shut down the industry in favor of broad, outside prospecting. Swiss surveyors and other representatives of international mining firms are arriving in Mali to take over from the locals." Continue reading →
"5 Invisible Forces That Are Now Lighting The Fuse On The Greatest Bull Market In Precious Metals History." Continue reading →